E. Java asks for 50 pct interest in oil, gas concessions

East Java province governor Imam Utomo has requested the government to surrender a 50-percent interest in oil and gas production sharing contract areas (PSC) in the region to the provincial administration, Kompas daily reported Tuesday.

Utomo argued that East Java is rich in oil and gas and that 80 percent of oil and gas excavated from the region was sold to area consumers.

?Our request is reasonable because oil and gas projects are located in East Java. Moreover, they directly impact the province,? the governor said.

Utomo said that he had officially submitted his request to President Megawati Sukarnoputri, and that the East Java provincial legislative council (DPRD) supported his move.

Meanwhile, the head of the East Java office of energy and mineral resources affairs, I Made Sutarya, said that, if the governor?s request if fulfilled, the 50-percent division would be applied on new PSCs and the 12 PSCs which would be extended.

Several investors currently operate oil and gas fields in East East Java including BP Indonesia (Pagerungan field), Lapindo Brantas (Sidoarjo), Pertamina (Pangkah, Gresik), Premier (Madura Premier), Kodeco (Madura Kodeco) and ExxonMobil (Madura Mobil). (*)